WBC Heavyweight Champ Vitali Klitschko Hit By Teargas During Ukrainian Parliment Protest

KIEV, Ukraine -- Floyd Mayweather could learn a thing or two from Vitali Klitschko. The Ukrainian heavyweight boxer has never avoided an opponent, is the only world champion to hold a Ph.D., and has never been knocked down in a fight, or lost a decision (his two losses came on a torn rotator cuff and a cut above his eye, and he was leading on all scorecards at the time of both TKOs). He’s also the leader of Ukrainian political party UDAR (he’s running for the mayor of Kiev), and as such has found another avenue in which to get into some pretty tough brawls. One of those occurred on Wednesday, as Ukrainians staged a rally in Kiev to protest a Russian language bill passed by parliament, making Russian, not Ukrainian, the official language in some formal settings in the former Soviet republic. For his efforts Klitschko and several other protestors got a dose of tear gas courtesy of riot police. The protest quickly turned violent, with police using batons and tear gas to subdue the crowd. Photographs show blood streaming from Klitschko’s left hand and him appearing to protect the hand as he is rushed out of the mob. However, Boente said that aside from the effects of the tear gas, Klitschko, who will defend his title on September 8th in Moscow against Manuel Charr, was “totally fine.” Klitschko has said that after his fight with Charr he will turn his focus to the October Ukrainian elections, where his party will attempt to secure more seats in Parliament. “I have spent a lot of time in Germany, in western Europe, in the U.S.,” Klitschko told SI.com in February. “I want the western life standards for my country. Ukraine is a young democracy with huge potential, but it doesn’t have those standards. I don’t want to wait for changes in my country. I know what has to change.” The language controversy is a sensitive issue here, as the Ukrainian language was banned from schools in the Russian Empire from 1804 until the Russian Revolution in the early 20th Century. It lived on in secrecy through folklore and storytelling, somewhat similar to the way that the U.S. government tried to stamp out some Native American languages in the 19th Century. Klitschko’s younger brother, Wladimir Klitschko, is the WBA Super, IBF, WBO, IBO and The Ring heavyweight champion.

Ukraine Warned By Rights Groups, European Union

KIEV, Ukraine -- Freedom House released a report on Thursday reviewing the gradual loss of political freedoms in Ukraine. The report comes on the heels of a condemnation of the country by the European Court of Human Rights on Tuesday, saying that the arrest of former Ukrainian interior minister, Yuri Lutsenko, was a violation of the European Convention on Human Rights. Here's a closer look at the recent accusations and complaints against Ukrainian government policies. The report from Freedom House, entitled "Sounding the Alarm Round 2: Protecting Democracy in Ukraine," indicated that the Security Service of Ukraine (SBU) was becoming intrusive, that the executive branch was consolidating its power, and that corruption, opposition to freedom of assembly, and the repression of free speech were worrying trends in Ukraine. David J. Kramer, president of Freedom House, noted that "In the coming weeks and months, Ukraine's leadership must make a choice between consolidating power through undemocratic means and advancing its nation's European aspirations." Freedom House warned that while they don't feel sanctions are needed yet, they are hopeful that even the threat of sanctions from the U.S. might change the course of Ukranian government. On June 8, Transparency International noted that Poland and Ukraine, as co-hosts of the UEFA Euro 2012 football championship, could see problems due to the Ukraine's poor standing on the Corruption Perceptions Index, the threat of boycott by European officials, construction delays, and accusations of xenophobia could all be problems. Ukraine had only a score of 2.3 out of 10, 10 being the best perception, and ranked at 152 of 182 countries. The German Foreign Ministry reported comments from Minister of State Cornelia Pieper on July 3, in which she said the judgement from the European Court of Human Rights "confirms our concerns about the rule of law and democracy in Ukraine." She warned that Ukraine was not allowing due process for the opposition. According to the Associated Press, opposition student activists took to the streets of Kiev on Thursday, angry about a change in law that will permit Russian to be used in courts, education, and government in the Russian-speaking area of Ukraine. The day before, another report from the AP indicated that protesters were angry that the bill might be responsible for keeping the country in the Russian sphere, and that the use of Russian could suppress the use of Ukrainian. Parliament Speaker Volodymyr Lytvyn resigned, while riot police stopped protesters from blocking a government building in Kiev.

Gas Pipes And Price Hikes: Ukraine, Russia's Uneasy Alliance

KIEV, Ukraine -- Early this year Ukraine - along with much of eastern Europe - was caught in a deep and protracted cold snap. Many froze to death, energy demand spiked, and to top it all Russia accused Ukraine of stealing gas from transit pipes destined for western Europe for the second time in three years. Ukraine issued a firm denial, adding another blot to the two nations' fraught - but highly dependent - relationship. The fact remains that Ukraine needs Russian gas while Russia needs Ukraine's transit pipeline to export west. The spat came on the heels of a disastrous relationship meltdown in 2009, when for two nerve-wracking weeks Russia abruptly stopped pumping gas to Ukraine and Europe. The Russian energy giant Gazprom claimed Ukraine's gas company - Naftogaz Ukrainy - owed it huge sums of money in missed payments and fines. However, Naftogaz countered that it had paid the bill and claimed that Gazprom was in fact trying to force it to accept a new price for gas which it could ill afford. They eventually reached a deal, but Ukraine's Prime Minister Mykola Azarov still maintains that the terms are unfair: "Americans pay $70 for 1000 cubic meters of gas when Ukraine pays $550 to Russia for the same amount. It means almost ten times more. Tell me what kind of economy can take this?" He told CNN. However, America benefits from its own vast reserves of natural gas, and Russia argues that still Ukraine gets it for less than consumers in Poland, Hungary, Turkey and Romania. So, while Ukraine tries to negotiate a better deal with Russia, it's also working to break its dependency on Russian gas and diversify its sources of energy. A key part of the plan is to import liquid natural gas from other countries - such as Azerbaijan - which will be processed at a terminal built near the vast port of Odessa on the Black Sea. The head of the project, Vitaly Demyanin, says that by 2018 it should have replaced 30% of existing Russian gas imports. "It will have 10 billion cubic meters of alternative gas. It will help us to negotiate with our main supplier," he said. At the same time Yury Boiko, the Ukrainian energy minister, has high hopes that shale gas - formed deep underground within large shale rock formations - could also be a major alternative source of power in the decades to come. He told CNN that shale gas exploration in western Ukraine has "very large potential." But it's not just alternative gas supplies that the energy-hungry nation of 44.8 million residents has in its sights. The government has pledged to invest heavily in green energy. However, this won't do much to bolster their eco-credentials, as they are also planning to burn a great deal more coal too. It's all testament to their increasing desire to generate power without recourse to gas. Meanwhile, as Ukraine looks for other energy supplies, Russia is looking for other ways to get its gas to Europe. Russia is the world's biggest producer of natural gas and supplies Europe with nearly 40% of its imports, according to the European Commission . It has already built one pipeline that bypasses Ukraine. The 765-mile long "Nord Stream" pipeline - costing more than $12 billion - directly links Russia with the European Union via the Baltic Sea bed. At its launch in 2011, the then Russian Prime Minister, now President, Vladimir Putin, made an ominous and thinly-veiled reference to his Ukrainian neighbors. "Any transit country has always the temptation to take advantage of its transit status," he said. "That exclusivity is now disappearing." At the end of this year, Russia plans to begin construction on another gas pipe to Europe - the "South Stream" - running through the Black Sea to Bulgaria and on to Greece, Italy and Austria. The projects threaten to strip Ukraine of billions in revenue and any remaining leverage it might have over future gas prices. But in an effort to salvage long-term relations, Ukraine is now proposing a new model that would allow themselves, Europe and Russia equal control of their transit system. "So the consumers, the sellers, the supply and transit country is together. It's a good model and it's convenient for everybody," says energy minister Boiko. Only time will tell if these major energy reforms will change Russia's position in future negotiations and transform the horizon of Ukraine's economic future.

Ukrainian Bear Cub Rescued From Animal Traders

LUTSK, Ukraine -- A four-month-old bear cup that was illegally taken from its mother in a Ukrainian zoo and sold to animal traders has been rescued by a German animal charity. Nastia was sold by Lutsk zoo to an animal trader who wanted to sell her as a photo model for tourists. In a distressing video on YouTube, the cub can be heard screaming as it she was pushed into a transport box too small for her. Since the footage was aired by the charity Four Paws, the group enlisted the help of the authorities and Nastia has now been freed. Footage of the rescue was posted on Thursday. Dr Amir Khalil, head of the Four Paws project in Ukraine, who examined Nastia after she was rescued, said: "She is very anxious, malnourished and suffers from diarrhea." "I was horrified to see the cruel treatment of Nastia and I am relieved that we could rescue her. But there is still so much work for us to do." "A baby bear in the wild usually spends two years with its mother. Taking it away so young would leave the tiny bear traumatized."

Political Maneuvering Stalls Language Bill In Ukraine

MOSCOW, Russia -- The Ukrainian Parliament refused on Friday to accept the resignation of its leader and instead adjourned for the summer, leaving uncertain the fate of a contentious bill that would allow local and regional governments to grant official status to Russian and other languages, in addition to Ukrainian. Volodymyr M. Lytvyn, the chairman of Parliament, has refused to sign the bill, effectively blocking it from reaching President Viktor F. Yanukovich, who could sign it into law. Instead, Mr. Lytvyn submitted his resignation, challenging the Party of Regions, which holds the majority, to choose a new chairman who would let the bill go forward. The measure was adopted Tuesday in a move by the Party of Regions that was so unexpected that Mr. Lytvyn was not even present for the vote. Debate over the language bill has been so emotionally charged that it led to a brawl in Parliament in May. Hundreds of people demonstrated against the adoption of the bill this week, leading to violent clashes with riot police officers. Another big protest was expected on Friday, but it was essentially called off once it became clear that Parliament would adjourn without replacing Mr. Lytvyn or letting the bill go forward. Vadim Kolesnichenko, a member of the Party of Regions faction in Parliament, who comes from the largely Russian-speaking Crimea region, said the majority refused to consider Mr. Lytvyn’s resignation to prevent the chairman from scoring political points. “Mr. Lytvun is interested in his election and his own personal future,” said Mr. Kolesnichenko, a co-author of the language bill. “It’s a political spectacle for his own public relations.” Mr. Lytvyn, in a television interview, urged conciliation. “We have to do something so that there are no winners or losers,” he said. “Otherwise, Ukraine will lose.” Under the country’s Constitution, Ukrainian is the only official language. But Ukraine, a former Soviet republic, is home to millions of native Russian speakers, particularly in the eastern and southern parts of the country, where support for Mr. Yanukovich is strong. Critics of the bill say that if it passed it would undermine Ukrainian’s status and that Mr. Yanukovich and his supporters are trying to use the issue to shore up support ahead of parliamentary elections scheduled for October. They say the governing party is trying to distract voters from Ukraine’s economic problems and from criticism over rising authoritarianism, including widespread condemnation in Europe over the jailing of Mr. Yanukovich’s rival, Yulia V. Tymoshenko, a former prime minister. Supporters say the bill protects the rights of speakers of Russian and other languages should they make up 10 percent or more of the local population. In his interview on Friday on the Rada television station, Mr. Lytvyn said that Parliament had committed “immense violations” in approving the bill and he urged that a working group be created to find a compromise. The group would include language experts and representatives from each of the different factions in Parliament. He said that the bill was not given the proper number of readings, nor were amendments properly considered.“That is why it cannot be sent to the president,” Mr. Lytvyn said. “The question lies not in my signature. There are huge violations, which cannot be left as they are.” Mikhail Chechetko, deputy chairman of the Party of Regions, denied that the bill had been passed by deceptive means and once again declared that his party had bested its opponents. “We simply intellectually, inventively, creatively outplayed them,” Mr. Chechetko said in a telephone interview. “We didn’t give them the chance to create fights and scandals while this law was being passed.” He added, “In any country, the victorious party receives what? The right to realize its program. The party of losers? The right to criticism. These are the ABCs of politics.” Mykola V. Tomenko, the deputy chairman of Parliament, who had also offered to resign, said Friday that he had asked the prosecutor general to conduct a criminal investigation of how the language bill was approved.

U.S.-Russia visa requirements could be dropped by 2020 – Foreign Ministry

Russia's Foreign Ministry announced on Friday that Russia and the United States could drop visa requirements by the end of the decade. "There is a possibility to introduce visa-free travel for our citizens by the end of the decade," Russian Deputy Foreign Minister Sergei Ryabkov said on Friday. "The time frame is difficult to say now. But it is not a decade. With persistent work and well construed requests this goal is achievable." A bill that would see the existing U.S.-Russia visa regime eased is currently awaiting the State Duma's approval. The U.S side has already approved it.

Capital flight reversal ‘not due to Putin return’

The news this week that the economy recorded an inflow of capital in June for the first time in 11 months could not have come at a better time for Russia’s leadership, which is struggling to beat back negative perceptions of the country’s investment attractiveness. The data, released by the Central Bank on Wednesday, fit snugly with the widespread idea that the biggest driver behind outflows of around $120 billion since the start of 2011 was political risk. Nervousness ahead of the elections, coupled with increasing social unrest, caused wealthy Russians and foreign investors to pull funds out of Russia and stash them in safe havens abroad, the theory goes. And now that President Vladimir Putin is safely back in the Kremlin, money is flowing back in, accounting for the $5 billion surplus in June. But analysts say that while the political risk factor should not be overlooked, other factors are playing a much bigger role, presenting a much less rosy picture for the economy. One of the biggest drivers of the $80.4 billion that left the country in 2011, according to economists, was foreign banks, which borrowed heavily from their Russian subsidiaries to fund debt in their home countries in the struggling euro zone. “European banks borrowing from their Russian daughter companies was certainly a big problem in the third quarter,” Andrew Keeley, a banking analyst at Troika Dialog investment bank, told . “I know that UniCredit alone took out a few billion dollars.” Hedge fund Prosperity Capital Management told Business News Europe last month that it estimated around $40 billion of last year’s capital outflows, nearly half, to have come from foreign banks borrowing money from their Russian subsidiaries. The problem got so bad, that the Central Bank called a meeting last year with the heads of foreign banks to warn them that they faced restrictions if they did not stop pulling money out of Russia. Largely due to an easing of the European debt crisis in the opening months of this year, the financial sector contributed little to Russian capital outflows in the first quarter, which totaled $34 billion. Most of the “flight” came instead from oil companies keeping excess revenues from high oil prices in dollars to avoid making losses by transferring it to a strong ruble, Keeley said. “It makes sense to keep surplus revenues in foreign exchange reserves as a hedge for when the oil price comes down again,” he added. This resulted in a reversal of the process when the oil price and ruble dropped in the second quarter, although outflows from the corporate sector and from the general population remained high, around $20 billion, analysts said. The Central Bank’s first deputy chairman, Alexei Ulyukayev, said Wednesday that a major driver for the reversal in capital flight in June was banks reducing investments in net foreign assets, Vedomosti reported. The paper added that Russian banks recorded capital inflows of $11.6 billion in April-June, compared to an outflow of $9.7 billion in January-March. Increased political stability may have also had an effect, said Anna Bogdyukevich, an economist at Aton investment bank, but if it did, it is unlikely to be sustainable. “[The easing of political uncertainty] may only have a short-lived impact on Russia’s investment attractiveness, unless the government adheres to its announced reform schedule,” Bogdyukevich said. She dismisses parallels with 2008, another election year, when $24.3 billion left the country in the first quarter, but $40 billion flowed in in the three months after the election. “Few of the factors in place in 2008, such as an appreciating economy and high oil prices, are in place today,” Bogdyukevich said. “The ‘election factor’ alone is unlikely to reverse the direction of capital flow.” The Economic Development Ministry forecasts net capital outflow of $10 billion to $20 billion for the whole of 2012, which means Russia will need inflows of at least $23 billion in the second half. Analysts say that the forecast global economic slowdown makes it unlikely that capital will begin flowing back into Russia at this rate. Alfa-Bank analysts say they are maintaining their forecast for a full-year outflow at $70 billion. Uralsib analysts are even more pessimistic, saying levels may even exceed those recorded in 2011, adding, however, that outflows will decrease toward the end of the year. “Even though we expect capital flight to decrease toward the end of the year, we now think that total capital outflows in 2012 may exceed the 2011 figure of $80.4 billion,” Uralsib analysts said in a note to investors Wednesday. “[Central Bank] data show that despite stable revenue from commodity exports, Russia suffers from massive capital outflows, due to a lack of long-term investment opportunities and high economic risks.”